Summary
The Supreme Court held that the Air India employee’s resignation became effective after the prescribed thirty-day notice without acceptance under the applicable certified standing orders. His service bond had expired and no disciplinary action was pending or contemplated when he resigned. The High Court judgment and refusal to accept resignation were quashed. Available benefits were directed to be paid within three months, with prevailing provident-fund interest and 6% interest on payable gratuity or other benefits.
Issues
- Whether the applicable standing orders required acceptance after a full thirty-day resignation notice.
- Whether any disciplinary or bond restriction prevented cessation of employment.
- What payment directions followed the effective resignation.
Provisions considered
- Standing Orders 17 and 18, Air India Certified Standing OrdersFor this permanent employee, the prescribed thirty-day notice made resignation effective on expiry without acceptance. The disciplinary-action exception did not apply, and the five-year service bond had already expired. (¶¶ 8, 9, 10, 11, 12, 13, 16, 18)
Held
- Whether acceptance is required depends on the governing provision’s language. Under these standing orders, a resignation on full thirty-day notice became operative on expiry; the provisions on earlier acceptance and disciplinary proceedings did not impose a general acceptance requirement. (¶¶ 8, 9, 10, 11, 12, 13)
- No disciplinary action was pending or contemplated when this employee resigned, and his minimum-service bond period was over. The employer lacked power under Standing Order 18 to reject this resignation. (¶¶ 12, 13, 16, 18)
- The High Court judgment and employer’s refusal were quashed. Available benefits were payable, provident fund with prevailing interest rates, and payable gratuity or other benefits with 6% annual interest; outstanding amounts were to be paid within three months. (¶ 19)
- The similar connected appeal was allowed on the same terms. (¶¶ 20, 21)
Result
Both appeals allowed. High Court judgment and refusal to accept resignation quashed; available outstanding benefits to be paid within three months, with the specified provident-fund interest and 6% annual interest on payable gratuity or other benefits.